| Urban infrastructure construction and real estate industry’s development and management are the pillar industry of national economy for on the one hand, they make positive contributions to taxation of central and local governments, which reflects the course of a certain area’s urbanization development and represents local government’s political achievements to a certain extent, and on the other hand, the quality of residents’ lives are improved by the gradual perfection of infrastructure with the reason of the residence’s security and comfort, which are guaranteed by the quality of property construction. Therefore, urban infrastructure construction and real estate industry’s development and management are industries related to national plans and people’s livelihood. However, the original infrastructure construction and the ability of real estate’s development and management fails to fulfill residents’ need because of the huge population in our country, the rapid expansion of population’s density in large and medium sized cities and residents’ increased demands for the quality of life. Furthermore, with the double effect of international financial crisis and domestic “real mission”, great changes occur in the business environment of infrastructure construction and real estate’s development and management, which intensify industry competition and make governmental macro-control continue to increase. As a result, the financial risk of this industry grows and profit levels decline sharply. Thus, how to adjust industrial structure of infrastructure construction and real estate’s development and management and improve the ability of this kind of enterprises’ management and development is a crucial problem, which should be solved urgently at the moment. For this reason, this paper will discuss the condition, characteristics and contributing factors of financial risks existing in the industry of infrastructure construction and real estate’s development and management to advance countermeasures and suggestions for ensuring enterprises’ profit level and prevent and control financial risk by analyzing financial risk and its prevention of Xinjiang Urban Construction(group) co., Ltd.Running and developing for more than twenty years, Xinjiang Urban Construction(group) co., Ltd. is a listed company in Xinjiang, which accumulates excellent managerial and technical experience and forms its own management philosophies and advanced technical capabilities to lay a solid foundation for the company’s long-term development. The company possesses unique competitive advantage in the industry of infrastructure construction and real estate’s development and management, including the support from the government of Xinjiang Uygur Autonomous Region and numerous shareholders, its industrial chain by the company’s diversified operation, extensive experience and strong technical capability. However, the industry is highly correlated with and promotes other industries. Once the financial risks take place, the consequence will be serious and concern many aspects. Therefore, a company should enhance the comprehensive management level to reduce financial risks and improve profitability. Besides, a company also need strengthen the prevention and regulation of financial risks to remain invincible in the fierce market competition.In this paper, by using literature method, comparative analysis method and other research methods of combining theory and practice method, Xinjiang urban construction(Group) of the Limited by Share Ltd’s financial risk analysis, and find out effective measures and Countermeasures of financial risk prevention. The station is analysis and Discussion on the theory of risk, the financial risk in the business point of view, different analysis methods of financial risk from two aspects of qualitative and quantitative, and according to the Xinjiang urban construction(Group) the financial condition of the Limited by Share Ltd, the company’s financial risk analysis shows the objectivity, comprehensiveness, uncertainty, controllability four characteristics. The reasons include the financial risks arising from: national macro-control factors, market competition factors, and regional instability factors; the listing Corporation information disclosure risk management deficiencies, unreasonable capital structure factors, factors, factors, personnel consciousness factors. The specific reasons are: the company’s liabilities than assets belonging to the husband, the high debt management; enterprise holds a large amount of monetary funds, accounts receivable and prepayments, cannot produce any income; the recent asset yields generally declined, deviate from the expected return. From the above analysis that the company faces financial risk has gradually expanded, increasing trend, according to the specific reasons analysis of Xinjiang urban construction(Group) prevention and control measures of Limited by Share Ltd financial risk, the Xinjiang urban construction(Group) prevention and control recommendations of the Limited by Share Ltd.The innovation of the article is to summarize the experts and scholars on the basis of research on financial risk, financial risk to explore common ground, a representative selection of Xinjiang in infrastructure construction and real estate development business enterprises-Xinjiang Urban Construction(Group) Co., Ltd. to study effective measures to build the company’s financial risk prevention, in order to be able to apply to Xinjiang as well as the country’s real estate business. |
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